The housing market is losing steam and is heading into more stable territory, according to new stock on market data.
Analysis firm SQM Research has reported that 366,413 properties across Australia were listed during May, a 5.2 per cent increase on April.
Managing director Louis Christopher said the market “frenzy” of 12 months earlier was no longer evident because an increase in supply had helped to stabilise prices.
“Some heat has come out of the national housing market as SQM Research is no longer recording the large-scale, year-on-year decreases in listings that were occurring this time last year," he said.
“Right now, it appears to be a market that is steady and not too strong but not too weak. At this stage, I don’t believe the market is at the point where an upward pressure would be placed on interest rates.”
Darwin has recorded a 21.7 per cent increase in listings in the past year – the only capital to experience such a radical rise.
Conversely, Canberra is experiencing the most substantial decrease in stock listings since this time last year, with an 11.4 per cent decrease.
SQM Research’s Asking Prices Index revealed house and unit prices have continued to remain sluggish on a capital city average, with houses up 0.7 per cent month on month and units up 0.5 per cent.